Montana
Not sure which is right? A specialist compares whole life vs annuity for your goals.
Income vs legacy, get honest guidance on which product fits. Free expert callback.
1,824 people compared whole life vs annuities before making a decision this year
Whole Life: Death benefit protection. Annuity: Retirement income generation.
Whole Life: 3-5% over time. Annuity: 4-8% depending on type (fixed vs indexed).
Whole Life: Legacy planning. Annuity: Retirement income planning.
Understanding the strengths and weaknesses of each
Best for leaving a tax-free death benefit to heirs, estate planning, or if you need permanent life insurance coverage. Growth is secondary to death benefit protection.
Best for creating guaranteed retirement income, higher growth potential, or converting savings into lifetime income. Death benefits are secondary to income generation.
Many retirees use both - whole life for legacy/death benefit, annuity for income. Allocating between both provides balanced retirement and estate planning.
Whole life has ongoing premiums and insurance costs. Annuities have no ongoing premiums after initial purchase. Surrender charges apply to both if accessed early.
Whole Life Insurance vs Fixed Annuity
| Feature | Whole Life | Fixed Annuity |
|---|---|---|
| Primary Purpose | Death Benefit | Retirement Income |
| Growth Rate | 3-5% long-term | 4-8% (varies by type) |
| Income Generation | Via loans/withdrawals | Guaranteed lifetime income |
| Ongoing Costs | Annual premiums | None after purchase |
| Death Benefit | Tax-free to heirs | Account value (taxable gains) |
| Liquidity | Policy loans available | 10% annual withdrawal |
| Best Use | Legacy planning | Income planning |
Get personalized analysis based on your goals and situation